Microsoft revealed that they will introduce its first flash-based Zune music player, directly challenging Apple’s top-selling iPod nano. No details of the player are available yet. The as-yet unnamed jukebox is likely to be closely related to the currently Japan-only Gigabeat P but should add increase storage, the double-shot designer casing, and the Zune’s signature Wi-Fi sharing feature.

The wireless functionality should also be expanded. Microsoft also expressed a desire to add Wi-Fi browsing and downloading through the Zune Marketplace, allowing owners to add new music to the Zune without first linking to a PC. The player will ideally have “filling stations” at existing Wi-Fi hotspots such as Starbucks. Microsoft can’t commit to a launch window for the feature, but hopes to bring it to market as soon as possible.